15 September 2016 12:02 am
“This year ’s target will be 5.4 percent. It will be further reduced to 4.7 percent in 2017,” Karunanayake told the IMF mission, the ministry said in a statement. President Maithripala Sirisena’s coalition government faces a delay in implementing value-added-tax (VAT) hikes after two court rulings forced a temporary suspension of the move. But the Cabinet has approved the increase of the VAT to 15 percent from 11 percent now, with some amendments, government spokesman Gayantha Karunathilake said yesterday. The amended tax bill will also impose tax on telecoms services, tobacco products, air ticketing, and housing projects, a Cabinet document showed.